Because debt and debt-related stress can be a significant burden, taking care of debt can be a significant life step for anyone who has been struggling with overwhelming debt for some time. Especially for those facing medical bills, or may be facing other everyday financial struggles that have gotten out of hand and have resulted in the use of credit cards, understanding how they might enjoy debt relief can be significant.
There are different types of options available to struggling consumers to help them manage their debt and potentially be debt free. Personal bankruptcy protections can help the filing party with their debt-related concerns. There are two primary types of personal bankruptcy and how struggling consumers can qualify for each has been recently been discussed on this blog. The two types of personal bankruptcy protection are Chapter 7 bankruptcy and Chapter 13 bankruptcy.
After either type of personal bankruptcy protection is filed, an automatic stay prevents creditor collection actions from proceeding while the bankruptcy process is ongoing. This can provide breathing room for the filing party who may be struggling to pay their bills and worried about what they will do. Additionally, personal bankruptcy protection may provide help with medical and other bills and provide protections for a family home or car. Chapter 7 bankruptcy will allow the filing party to liquidate non-exempt property to repay creditors and a Chapter 13 bankruptcy will allow the filing party to reorganize their debt and repay it over time.
The bottom line is that personal bankruptcy protections are available to help struggling consumers eliminate their debt and enjoy a fresh financial start. They accomplish this in different ways so it is important for struggling consumers considering bankruptcy as an option to know which option may be best for them and how to qualify to get help.